HEI-A

HEICO is a best-in-class aerospace compounder, and the numbers prove it. Revenue grew from $1.87B (FY2021) to $4.49B (FY2025) — roughly a 24% CAGR — while net income climbed from $304M to $690M. FY2025 alone delivered revenue +16.3%, net income +34.3%, diluted EPS +33.5%, and operating cash flow +39.0% to $934M against just $72.9M of capex, implying ~$861M of free cash flow. That asset-light, cash-generative profile sits on a genuine moat: per the MD&A, the Flight Support Group designs and sells FAA-approved PMA jet-engine and aircraft replacement parts and aftermarket repair/overhaul, while the Electronic Technologies Group makes niche defense, space, and microwave/electro-optical components — businesses with pricing power and high switching costs. Operating margin is a healthy 22.7%.

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